Question

Pratibha borrows Rs. 47000 from a finance company to buy her first car. The rate of simple interest is 17% and she borrows the money over a 5 years period. Find how much amount Pratibha should repay the finance company at the end of five years.

Answer 1

Hint: The question is from the concept of simple interest. Here the principal amount will be the borrowed amount then we have the rate of interest as 17% and the time given is 5 years. We will use the formula of simple interest here.
Formula used:
If ‘P’ represents principal amount, ‘T’ represents the time and ‘R’ represents the rate of interest then we have the simple interest(I) with these parameters is given by the formula:
 $ I = \dfrac{{P \times T \times R}}{{100}} $
And the repay amount is the sum of principal amount and simple interest.
Repay amount= $ I + P $

Complete step-by-step answer:
We will take the borrowed amount as the principal amount.
Pratibha borrowed Rs. 47000 from a finance company to buy her first car. So here the principal amount is 47000/- . Now we also have the rate of simple interest that is 17% and we are given that she borrows the money for a time of 5 years.
We are asked to find the simplest interest.
So, let’s apply the formula to find the simple interest.
 $ \Rightarrow I = \dfrac{{P \times T \times R}}{{100}} $
As we have P=47,000, T=5, R=17 we can put these values above and get
 $ \Rightarrow I = \dfrac{{47000 \times 5 \times 17}}{{100}} $
 $ \Rightarrow I = 39,950 $
So now we have simplest interest as 39,950/-
So now we will add the simple interest with the principle amount to find the repay amount.
Now total amount=simple interest + principle
=\[39950 + 47000 = 86950\]
Hence the final amount is Rs. 86950
So, the correct answer is “Rs.86950”.

Note: While putting the values we should take care of the values so as to find the correct value. If you want to skip the long process of calculating the “repay amount’ you can use the formula:
Repay amount=Simple interest(I)+Principal amount= $ \dfrac{{P \times T \times R}}{{100}} + P $